According to Azal Coffee's 2024 Franchise Disclosure Document, the Securities Commissioner in North Dakota has deemed it unfair, unjust, or inequitable for franchise agreements to require franchisees to arbitrate disputes at a location that is remote from the franchisee's business. This means that Azal Coffee cannot enforce a clause in its franchise agreement that forces a North Dakota franchisee to arbitrate disputes outside of a reasonable distance from their business location. This position is based on Section 51-19-09 of the North Dakota Century Code.

This provision aims to protect North Dakota franchisees from facing undue burdens and costs associated with traveling to distant locations for arbitration proceedings. It ensures that disputes can be resolved in a more convenient and accessible forum for the franchisee. The FDD also states that this provision's effectiveness is subject to meeting the jurisdictional requirements of the North Dakota Franchise Investment Law independently, without relying on any amendments.

Prospective Azal Coffee franchisees in North Dakota should be aware of this protection and understand that they have the right to challenge any arbitration clause that requires them to travel to a remote location. This does not necessarily prevent arbitration from occurring, but it does ensure that the arbitration takes place in a location that is fair and reasonable for the franchisee. Franchisees should consult with an attorney to fully understand their rights under North Dakota law.